Analysis of Export-Import Operations: A Study On Pacific Jeans Limited

Analysis of Export-Import Operations: A Study On
Pacific Jeans Limited

[This internship/dissertation report is submitted for this partial fulfillment of the degree of
Bachelor of Business Administration with a major in Finance and Banking]
Prepared By
Mustakim Shahriar Fahim

Matric ID No. : B191036
Program: Bachelor of Business Administration
Session: Spring-2022
Major: Finance and Banking
International Islamic University Chittagong
Supervised by
Dr. Mohammad Rahim Uddin

Associate Professor
Department of Business Administration

Faculty of Business Studies
Page | 1
Letter of Transmittal
To
The Convener
Internship & Dissertation Committee
Department Of Business Administration
Subject: Prayer for accepting Internship Report.
Dear Sir,
With time, I am a student of “International Islamic University Chittagong” standing on the

other entity of my course completion, hence are finalized with my internship report “Analysis
of Export-Import Financial Operations: A Study On Pacific Jeans Limited.” vividly enough,
my report comprises adequate endeavors. However no doubt, my contribution will be best
evaluated on your sharp scale of acceptance & and analytical remarks.
I have prepared this report by consulting with my honorable sir Dr. Mohammad Rahim
Uddin, Associate Professor, DBA, IIUC, and my workplace supervisor sir Mr. Mishu
Bhattacharjee, Deputy Manager, Accounts and Finance at Pacific Jeans Limited, NHT
Commercial Building. Hopefully, you will discover my well-researched, informative approach
as a hallmark of hard work. Rather, in case of any further clarification or elaboration as to my
report, I would welcome the opportunity to consult with you to explore how my findings could
best meet your needs.
I have tried my best to gather relevant information for preparing a complete report by following
the internship proposal. This report is not free from mistakes due to some limitations. I hope
you will accept it with gracious consideration.
Sincerely,
Matric ID: B191036
Concentration: Finance and Banking
Page | 2
Student Declaration
I hereby declare that the report namely “Analysis of Export-Import Operations: A Study On
Pacific Jeans Ltd.” is completed by me which is based on my practical work experience and a
comprehensive study of the existing activities of Accounts and Finance Department of Pacific
Jeans Limited. This particular report has not been previously submitted to any other University/
College/ Organization for academic qualification certificate/ diploma or degree.
I have prepared it for the academic purpose of a Bachelor of Business Administration degree
which requires practical work experience.
………………………..
Matric ID No. : B191036
Major : Finance and Banking
Department of Business administration
Page | 3
Certificate of Internship
Page | 4
ACKNOWLEDGEMENT
Internship program is an integral part of BBA (Bachelor of Business Administration) course of

International Islamic University Chittagong (IIUC). Every BBA student was assigned to
conduct a internship program in the practical field directed by the studied subject to learn
something within the pre-stipulated time by observing these organizations’ daily practices
about the business factors. In this regard, my internship was arranged in the Exporting Garment
Industry with the deliberate counseling of Dr. Mohammad Rahim Uddin, Assistant Professor
of Department of Business administration International Islamic University Chittagong.
First of all my hearty thanks go to him who had been very keen on showing me the exact way
to prepare this compact report. My thanks go to Mr. Shuaib Uddin Ahmed, Manager HR and
Admin who has allowed me to conduct my internship in their well-known Exporting Garment
Industry in Bangladesh. My special thanks and gratitude to Mr. Mishu Bhattacharjee, Deputy
Manager, Accounts and Finance at Pacific Jeans Ltd. for his ample help in providing me with
support books and other articles throughout my working period in the institution and who
managed his invaluable time for guiding me in the proper way for preparing this report. It
would be unwise on my part if I didn’t acknowledge the superb support of all the officers,
especially of those with whom I worked.
In this connection, I must name Mr. Ashataru Bhattacharjee, Executive Senior Officer; Mst.
Eyrin Sultana, Senior Executive Officer. I worked with them practically, tried to share their
perception and feelings, and based on my realization, prepared a report from my point of view.
Page | 5
Executive Summary
During my internship, which spanned from January 12, 2023 to May 14, 2023 I focused on
gaining insights into the finance and banking aspects of the company's export-import
operations.
Throughout my internship, I actively engaged in various finance and accounting tasks related
to the company's export-import operations. These tasks included financial analysis of export-
import transactions, documentation and compliance of accounts receivable and payable,
foreign currency management, export pricing, cost analysis, and use of Tally.ERP 9 and Oracle
tools system. By actively participating in these activities, I acquired practical knowledge and
hands-on experience in applying finance and banking principles to the export-import operations
of a prominent garment manufacturer in Bangladesh.
In this report, I have discussed every major aspect of my work experience during my internship
period. I have worked on “Analysis of Export-Import Operations: A Study On Pacific Jeans
Ltd.”
The main objective of this study is to give a brief idea about the theoretical aspects of the
export-import operations of Pacific Jeans Ltd.(PJL), export-import financing of PJL, method
and documents of export and import, exports & and imports volume analysis, export and import
country origin analysis, exported and imported product analysis, export-import cost and
profitability analysis of PJL, over these 4 months. For the collection of data for this report, I
have used both primary and secondary sources. I have collected the data from personal
observation and informal discussions with the employees of Pacific Jeans Limited, Chattogram,
and CEPZ-19 and my other sources were PJL’s annual report (2022), published documents on
the internet, etc.
In this report, the first part is about the Background of the study including the objectives of
Pacific Jeans Limited (PJL), methodology, scope, and limitations of the study. Part two is about
the organizational overview including PJL, Profile of Pacific Jeans Limited, Key Financial
Highlights of PJL, Vision statement, Mission statement, Motto, Organogram, Corporate
structure of PJL, products, and buyer of PJL, code of conduct, marketing and banking
activities, Policies and Procedures of Pacific Jeans Ltd.. The third part is regarding theoretical
aspects of the Export-Import Operations of (PJL) Pacific Jeans Limited. The fourth part is the
Analysis of Export-Import Operations of Pacific Jeans Limited. And the fifth part which is
the last part of my report is about Findings, Recommendations and Conclusion.
I am grateful for the opportunity to have worked with the Finance and Accounts team at Pacific
Jeans Limited, and I am confident that the skills and knowledge I have gained during my
internship will be invaluable in my future career endeavors in the Finance and Banking field,
particularly in the context of export-import operations.
Page | 6
Table of Content
Serial Contents Page
No: No:
a) Letter of Transmittal 2
b) Student Declaration 3
c) Certificate of Internship 4
d) ACKNOWLEDGEMENT 5
e) Executive Summary 6
CHAPTER ONE
Background of The Study

No: No:
1.1 Introduction 12
1.2 Origin of The Study 13

1.3 The objective of The Study 13
1.4 Data Analysis 13

1.5 Methodology 15
1.6 Scope of the Study 15
1.7 Limitations of the report 15
Page | 7
CHAPTER TWO
Organizational Overview

No: No:
2.1 About Pacific Jeans Ltd. 17-18
2.2 Historical background of Pacific Jeans Ltd. 19

2.3 Profile of Pacific Jeans Ltd. 20-21
2.4 Organogram of Pacific Jeans Ltd. 22
2.5 Basic Corporate Structure of Pacific Jeans Ltd. 23
2.6 Units The Pacific Jeans Ltd. 24
2.7 Mission of Pacific Jeans Ltd. 25
2.8 Vision of PJL 25
2.9 Values of PJL 25-26
2.10 Objective of PJL 26
2.11 Policies and Procedures of Pacific Jeans td. 26
2.12 Code of Conduct of Pacific Jeans Group 27
2.13 Products Type of Pacific Jeans Ltd. 28
2.14 Denim Products Type 28
2.15 Factory and Group Key Personnel 28-29
2.16 Departments of PJL 29
2.17 Working Hours of Pacific Jeans Ltd. 29
2.18 Buyers of PJL 30
2.19 Marketing and Banking Activities of Pacific Jeans Ltd. 31
2.20 Way to attract & Retain Customer of PJL 32
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CHAPTER THREE
Theoretical Aspects of Export-Import Operations

No: No:
3.1 Comparative Advantage Theory of Pacific Jeans 34-35
Limited
3.2 The Gravity Model of Trade 35-36
3.3 The Product Life Cycle Theory of PJL 36-37
3.4 The Heckscher-Ohlin Theory of PJL 38-39
3.5 New Trade Theory of PJL 39-40
CHAPTER FOUR
Analysis of Export-Import Operations of Pacific Jeans LImited

No: No:
4.1 Export and Import Financing of Pacific Jeans Limited 42
4.2 Commercial Invoices of Pacific Jeans Limited 43

4.3 Pacific Jeans Limited Methods of Payment 44-47
4.4 Import Analysis of Pacific Jeans Limited 48-54
4.5 Export Analysis of Pacific Jeans Limited 55-59
4.6 Profitability Analysis of Pacific Jeans Limited (FY2018- 60-61
2022)
4.7 SWOT Analysis of Pacific Jeans Limited 62
Page | 9
CHAPTER FIVE
Findings, Recommendations and Conclusion

No: No:
5.1 Findings 64
5.2 Recommendations 65
5.3 Conclusion 66
 Reference 67
 Appendix 68-70
List of Figures
Figure-2.1 Pacific Jeans at a Glance
Figure-2.2 Profile of Pacific Jeans Limited
Figure-2.3 Organogram of Pacific Jeans Limited
Figure-2.4 Basic Corporate Structure
Figure-2.5 Units of Pacific Jeans Group
Figure-2.6 Products of Pacific Jeans Limited
Figure-2.7 Types of Product
Figure-2.9 Departments of Pacific Jeans Limited
Figure-2.10 Buyers of Pacific Jeans Limited
Figure-2.11 Marketing Activities of Pacific Jeans Limited
Figure-4.1 Imported Volume of PJL
Figure-4.2 Imported Country Origin of PJL
Figure-4.3 Imported Products Analysis
Figure-4.4 Average Cost Distribution of Import
Figure-4.5 PJL Exported Volume Analysis
Figure-4.6 Exported Country Origin of PJL
Figure-4.7 Average Exported Products
Figure-4.8 Costs Analysis of PJL
Figure-4.9 Profitability Analysis of PJl
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Chapter One:
Background of The Study
Page | 11
1.1. Introduction
Everyone must be an expert in his or her specialty in terms of both practical and theoretical
understanding. As the IIUC aspires to develop future business executives with an academic
and practical understanding of our country's economic sphere, the internship course and its
report is an important factor in the achievement of the aim. It is a systematic method of
acquiring, recording, and evaluating data regarding the topic that a student is studying in the
program. This internship program aims to connect practical knowledge with theoretical aspects.
Being a student of BBA with a major in Finance and Banking, I have completed my internship
at Pacific Jeans Limited, NHT Commercial Building,19-CEPZ, Chattogram, and the topic is
"Analysis of Export-Import Financial Operations: A Study On Pacific Jeans Ltd" Being an
Export-Import Garment industry exports various products to its buyers.
Pacific Jeans Limited is a world-class casual wear manufacturing company known for its state-
of-the-art production facility, extensive and unique research and development center, and
highly skilled human resources. At present Pacific Jeans Limited is one of the premium jeans
manufacturers exporting to over 50 countries. The study is based on the export-import
operations of Pacific Jeans Ltd. Import and export financing, as their titles imply, pay for the
accompanying expenses associated with receiving and shipping goods to and from companies
in other parts of the world. From tariffs to freight rates, duties, and fees, capital requirements
run the gamut. Import and export financing provides funding advances so the exchange of
goods can transpire.
Export-import business, also known as international trade, involves buying and selling goods
and services between countries. It is an important part of the global economy, as it allows for
the exchange of goods and services between countries, promoting economic growth and
development. Bangladesh is one of the fastest-growing economies in South Asia and has made
significant progress in the export-import industry over the past few decades. According to
the Export Promotion Bureau, Bangladesh’s exports reached $52.08 billion in FY 2021-22,
while its imports stood at $65.48 billion. In FY22, the RMG sector contributed 9.25 percent to
GDP. Bangladesh's overall RMG export earnings stood at USD 42613.15 million, which was
35.47 percent higher than that of the previous fiscal year. RMG as a major sector of export,
Pacific Jeans Ltd. plays a vital role in Bangladesh's RMG Sector. In 2022, Pacific Jeans has
touched the milestone of $500 million worth of apparel exports and has set a target of $600
million in earnings by the end of this year. So, for that progressive exporting RMG sector
export-import financial operations need to be efficient in the international market.
My report is prepared on the PJL’s efficient export-import financing, and sustainable growth
in export-import operations in the international market. I have made my best effort to enrich
this report with my practical and theoretical knowledge. My findings are mostly related to the
finance and accounts section, as I have been working in this department. Besides this, I came
across many other findings, which are reflected in this internship report.
Page | 12
1.2. Origin of the Study
The internship is a part of the BBA program at the International Islamic University
Chittagong. The report originated from the curriculum requirement of the BBA program. I
have completed my internship at “Pacific Jeans Ltd.” and have prepared my report on
“Analysis of Export-Import Operations: A Study On Pacific Jeans Ltd.” I chose the topic as
per consultation with my academic supervisor Dr. Mohammad Rahim Uddin, Associate
Professor, DBA, IIUC.
1.3. Objectives of The Study
The main objective of this study is to analyze the export-import operations of Pacific Jeans Ltd.
to use the theoretical and quantitative concepts, gained in classroom situations, in analyzing
real-life scenarios. This is also a partial requirement of the BBA program. This objective is met
by remaining attached to a reputed organization and by gaining some real-life experiences, so
that it adds value to my knowledge base of me, as a BBA graduate.
In the case of this report, the objectives are:
 To provide an overview of Pacific Jeans Limited.

 To assess export-import financial operations.
 To determine the export-import efficiency of Pacific Jeans Limited.
 To recommend some suggestions regarding export-import operations.
1.4. Data Analysis
As it is a quantitative report, data have been tabulated, analyzed, and interpreted with the help
of different export, import, and financial analyses.
Page | 13
1.5. Methodology
The report has been prepared based on the data collection from the primary and secondary
sources. The sources of primary and secondary data are used in preparing this report, which are
as follows:
a) Primary data sources:
Data has been collected through the Finance and Accounts Department of Pacific Jeans Ltd. &
and collected directly from the organization from personal interaction with the Chief Financial
Officer and other employees of the finance department of the company.
Other primary sources have been collected by
 Observation in the organization.
 Personal interview with the employees.
 Practical desk work.
b) Secondary data sources:

I have collected different types of secondary data in my search. Sources of secondary
information are as follows:
 Annual Report pf Pacific Jeans Ltd ( FY-2018 to FY-2022)
 Financial Statements.
 Commercial Invoices.
 Website and Publications.
 Internet
 Previous reports of Pacific Jeans Limited.
Page | 14
1.6. Scope of the Study
This report helps me to understand the clear real-time experience of the total management of
Pacific Jeans Limited. It helps me to understand how the Finance and Accounts department
reconciles, inputs, and analyzes export-import documents and operations. The report will
highlight an analysis of the export-import operations of Pacific Jeans Limited. This report also
highlights the theoretical aspects of the export-import operations of Pacific Jeans Limited.
1.7. Limitation of the Report
Certain limitations were faced while assembling the data to complete the report; which are as
follows:
 Time was the first limitation as the duration of the program was of three months only.
 Deficiencies in data were required for the study.
 Sampling size was limited.
 The data and information related to the topic were not easily available.
 The data seemed insufficient due to the lack of reliability to some extent.
 The employees sometimes were unable to provide information because of their busy
schedules.
 The study was not done very successfully due to inexperience.
 To maintain the confidentiality of the information data availability is a big issue.
Page | 15
Chapter-Two:
Organizational overview
Page | 16
2.1. About Pacific Jeans Limited
Pacific Jeans Ltd is a 100% export-oriented garments manufacturing industry. It started

commercial production in 1994. It is a private limited company and it is a "C" category
company which means there are 100% local investors. It is located in Chittagong Export
Processing Zone known as CEPZ, Bangladesh. Syed M Tanvir is the Managing Director of the
company. His father Md. Nasir Uddin a well-experienced business personnel and industrialist,
he has vast marketing experience and for exploring the export business.
Pacific Jeans Ltd. is the most modern fashion wear manufacturing company at Sea-port
“Chittagong” in Bangladesh. It specializes in the production of denim jeans, jackets, and other
apparel products for global brands and retailers. Pacific Jeans Ltd. has a vertically integrated
manufacturing process, which includes spinning, weaving, dyeing, printing, and finishing. The
company has a production capacity of approximately 3.34 million pieces of garments per
month and employs around 35,000 people. The company has a strong commitment to
sustainability and ethical business practices. It has implemented various initiatives to reduce
its environmental impact, such as using eco-friendly dyes and chemicals, installing energy-
efficient machinery, and utilizing renewable energy sources. Pacific Jeans Ltd. has also
implemented various social responsibility programs to ensure the well-being of its workers and
the communities in which it operates. The company provides its workers with safe and healthy
working conditions, fair wages, and benefits such as medical care, education, and childcare.
Pacific Jeans Ltd. exports its products to various countries, including the USA, Europe, and
Asia. It has received numerous awards for its quality products and business practices, including
the 'Best Supplier Award' from Walmart, the world's largest retailer.
Overall, Pacific Jeans Ltd. is a reputable and socially responsible garment manufacturing
company that specializes in producing quality denim products for global brands and retailers.
Management Team is strong and supportive equipped with excellent professional knowledge
under leadership of a veteran Managing Director Syed M Tanvir.
Page | 17
Figure 2.1 Pacific Jeans Limited at a glance
Page | 18
2.2. Historical Background of Pacific Jeans Limited
In 1984, Nasir Uddin had founded Pacific Jeans and made it grow to become a world-class
jeans manufacturing company, a state-of-the-art facility focused on extensive research and
high-skilled human resources. He made his journey with a factory, named NZN Fashion LTD
in 1984 with only 500 people. He was the first denim manufacturer in Bangladesh and at first,
his factory began to produce jeans for an Italian brand. Two years later, Mr. Md. Nasir Uddin
founded the first denim laundry in 1986 at CEPZ in Bangladesh. With time, the company has
continued blooming as a premium jeans Manufacturing Company. In 1994, He established
Pacific Jeans LTD with 1500 people after that the company expanded its production capacity
with eight units named NZN Fashion, Pacific Jeans Limited, Pacific Jeans LTD, Jeans 2000
LTD, Universal Jeans LTD, NHT Fashion LTD, Pacific Casual and NHT Holding. With a
continuous focus on quality improvement and value addition, adoption of updated denim
processing technology, commitment towards maintaining a safe and healthy workplace for the
workers, and strict adherence to customers compliance requirements, this group has become
one of the most preferred suppliers of the leading global fashion retailers.
The company owns even productive units, exports to 50 countries, and counts on an estimated
yearly turnover of US$400 million. Through his company he has also developed a series of
projects focused on supporting sustainable, social responsibility and social commitment causes.
Among Pacific Jeans' key clients there are Zara, H&M, C&A, Gap and, above all, Uniqlo, as
Pacific Jeans has been playing an important part as industrial arm of Fast Retailing Group.As
a highly committed entrepreneur and hard-worker, Nasir Uddin also served as a director of the
Bangladesh Garment Manufacturers and Exporters Association (BGMEA).Among various
insiders remembering this key personality dedicated to his work and his country. The denim
industry is in mourning the loss of Nasir Uddin, founder and chairman of Pacific Jeans Group
Bangladesh, who died on February 28, 2022, at the age of 71 of cancer.
Page | 19
2.3. Profile of Pacific Jeans Limited
Name Pacific Jeans Limited
Logo
Address Plot # 16-19, Sector # 05

Chittagong Export Processing Zone(CEPZ)
Chattogram-4223, Bangladesh
Web Address https://www.pacificjeans.com/
Date of Establishment 5th August 1994
Date of commercial 26th November 1994

production
Category of the company ‘C’ Type (100% Private Bangladeshi Ownership)
Name of the owner/ Founder Late Md. Nasir Uddin
Directors of the Company Mrs. Syeda Umme Habiba Begum

Mr. Syed Mohammad Tanvir (Managing Director)
Sister Concerns Jeans 2000 Ltd.

NZN Fashion Wears Limited
NZN Garments Limited
Diamond Fashion Weat (Pvt.) Ltd.
Universal Jeans Ltd.
Pacific Accessories Ltd.
Vision of the Company Respect for Individual
Product of the Company Branded Fashion Jeans and Casual Wear
Floor Area 8,25,000 Square Feet

Number of Machines Approximately 9,234
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Export Destinations USA, Europe , Japan and Canada ( total 50 countries)
Material Searching Area Indonesia, Hong-Kong, Taiwan, China, India, Dubai,

Pakistan, Mexico, Japan, South Korea
Total Manpower 35,000
Total Number of workers Male- 11,271

Female- 18,722
Production Capacity 90,000 Per Day
Total Production Approximately 40 million per annum (from 2022)
Tax Exemption Period 10 Year (1994-2004)
Bank Name HSBC

Citi Bank NA
Agrani Bank
IBBL
Standard Chartered
Competitor Combodia, China, Vietnam, India and other local

competitor
Various Process involved in Cutting

Production Sewing
Wet Processing or Washing
Finishing
Working Hours 08 a.m. to 5 p.m.
Major Department of the Production Department

Company Production Accounting Department
Information Technology (IT)
CAD & Sampling Department
Merchandising Department
Engineering Department Supply Chain Management
Dept.
Compliance Department
Quality Assurance Dept. (Q.A.D)
Workers Absenteeism and Monthly Absenteeism 9.69% (in 2022 average %)

Labor Turnover (%)
Figure 2.2 Profile of Pacific Jeans Limited
Page | 21
2.4. Organogram of Pacific jeans Limited
Pacific Jeans Limited has a very tight, strict and clear organizational hierarchy in place to define
the authority and responsibility of individual employees in the organization. The organogram
of Pacific Jeans Ltd. is :
Figure 2.3 Organogram of Pacific jeans Limited
Page | 22
2.5. Basic Corporate Structure
Chairman
Managing Director
General Manager
Deputy General
Manager
Finance and
Accounts
Assistant General
Manager
Washing Maintainance Cutting
Manager
HRD Production Finance and Merchandising Store

Accounts
Deputy Manager
Finance and Commercial

HRD
Accounts
Assistant Deputy
Manager
Finance and
Store Production
Accounts
Senior Executive
Junior Executive
Staff
Worker
Figure 2.4 Basic Corporate Structure
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2.6. Units of Pacific Jeans Group
CASUALS
Pacific Jeans LTD
Processing Zone Pacific casuals
Chittagong,Plot # 14-19, Sector # 05 PLOT-31-32,
Export, Bangladesh. SECTOR-01,EPZ,CTG
Products: Jeans and Casual Wears (Bottom) Chittagong EPZ PS; Chittagong-4223;
Per day Capacity: 90,000 pcs Bangladesh
Year of Establishment: 25.11.1994 Per Day Capacity: 10,000 pcs
Year of Establishment: 2019
Pacific Accessories Limited Jeans 2000 Limited

Plot # 07, Sector # 5/A. Plot # 67, Sector # 7
Export Processing Zone Chittagong, Export Processing Zone Chittagong,
Bangladesh Bangladesh.
Products: Garments Acc. & Packing Products: Jeans and Casual Wears Per Day
Materials Year of Establishment: Capacity: 15,000 pcs
01.07.2000 Year of Establishment: 02.05.2004
NHT Fashions Limited

Universal Jeans Limited Plot # 20-22,
Plot # 9-11, Sector # 6/A. Sector # 05
Export Processing Zone Chittagong, Export Processing Zone Chittagong,
Bangladesh. Bangladesh.
Products: Jeans and Casual Wears Products: Jeans and Casual Wears (Bottom)
(Bottom) Per day Capacity: 50,000 pcs Per day Capacity: 25,000 pcs
Year of Establishment: 01.01.2008 Year of Establishment: 2013
Figure 2.5 Units of Pacific Jeans Group
Page | 24
2.7. Mission of Pacific Jeans Ltd.
 Operating facilities that are environment friendly and safe for employees and
communities as a whole.
 We uphold the integrity of all individuals, working in the industry by providing all legal
facilities including occupational health care and workplace safety.
 Continuous improvement of efficiency by introducing the latest technology and
technical expertise.
 Presenting the best value through effective cost management.
 Research market trends and ultimate consumer fashion demand.
 Satisfy the buyers by providing quality service on mutual trust and respect.
 Continuous product development according to the latest fashion
trends and innovations.
2.8. Vision:
Hit the Billion by 2028: Pacific Jeans Ltd. expanding to become a $1b exporter in 5 years.
2.9. Values:
 Speed: Respond quickly to market demands, reduce lead times, and stay competitive
in the fast-paced fashion industry.
 Integrity: Pacific Jeans Limited upholds ethical standards and practices, ensuring fair
treatment of workers, complying with labor laws and maintaining transparency in its
operations.
 Innovation: Continually exploring new design concepts, fabric technologies,
production techniques, and market trends. By fostering a culture of innovation, the
company can develop unique and trendy denim products that cater to the preferences
of buyers and customers.
 Sustainability: PJL focuses on minimizing its environmental impact by adopting
sustainable practices throughout the production process. This includes using eco-
friendly materials, implementing energy-efficient technologies, reducing waste, and
promoting responsible sourcing. By prioritizing sustainability, Pacific Jeans Limited
Page | 25
not only contributes to environmental conservation but also meets the growing demand
for ethically and environmentally conscious products.
 Quality: Pacific Jeans Limited strives to deliver high-quality products that meet
stringent standards in terms of design, craftsmanship, durability, and comfort. Quality
control measures are implemented at various stages of production to ensure that each
garment meets or exceeds customer expectations.
2.10. Objectives of Pacific Jeans Limited
 Best use of potentiality of garments industries of Bangladesh.

 Use the most modern technology in business field to the best possible extends, which
matches with the socio-economic condition of Bangladesh.
 Give opening to the new jobs.
 Developing a set of human resources with the most modem business philosophy,
practice and technology.
 Maintaining at least 80% efficiency.
2.11. Policies and Procedures of Pacific Jeans Limited
 Maintain cordial relations with all stakeholders, namely- customers or buyers, suppliers
and employees
 Fight against dishonesty, fraud and corruption as and when it occurs.
 Recognize the contribution of each individual and assist others to make meaningful
contribution.
 Equal rights for all and no discrimination in any field,
 Always ensure maximum utilization of resources,
 Ensure health and safety of workers and encourage an environment conducive for work.
The vision of the company, which is also its motto- "RESPECT FOR INDIVIDUAL", has been
set up at the very entrance of the building. Boards bearing these words are placed on the walls
of each floor. The officials informed us that all the employees right from the top-level to the
junior most position is treated with respect and dignity for his/her work
Page | 26
2.12. Code of Conduct of Pacific Jeans Limited
Pacific Jeans Ltd. abides by the principle that decisions on hiring, salary, benefits,
advancement, termination, or retirement are based solely on the availability of an individual to
do the job.
 Forced Labour: Pacific Jeans Ltd. does not use forced labor in any form Prison,
indentured, bonded, or otherwise.
 Child Labour: Pacific Jeans Ltd. does not employ any person below the age of 18.
 Compensation: Pacific Jeans Ltd. Provides each employee with at least minimum
wage or higher and provides each employee a clear, written accounting for every pay
period.
 Benefits: Pacific Jeans Ltd. provides each employee with all legally mandated benefits.
These include meal subsidies, transportation, or transportation subsidies. Others cash
allowances, health care, pregnancy or sick leave, vacation, religious holidays, leave,
and contributions for the provident fund.
 Hours or Work/overtime: Pacific Jeans Ltd. complies with legally mandated work
hour's uses overtime only when each employee is fully compensated according to local
law and on a regularly scheduled basis provides one day off in seven and requires no
more than 60 hours of work per week.
 Management of Environment, Safety and Health: Pacific Jeans Ltd. has written
health safety guidelines, has a factory safety committee provides personal protective
equipment free of charge and mandates its use and complies with all applicable local
environmental, safety & health regulations.
Page | 27
2.13. Products Of Pacific Jeans Ltd.
Men’s Trousers Ladies Trousers Kids Jacket and Skirt
• Denim • Long Denim • Kids wear and • Denim Skirts

• Five Pocket • Shorts •Trousers • Short Skirt
• Shorts • Garments Dye • Long Skirt
• Chino • Ladies Overall • Denim Dress
• Bermuda • Length Trousers • Long Denim
• Garments Dye Jacket
• Three Quarter • Short Denim
• Long Pant Jacket
• Joggers
Figure 2.6 Products of Pacific Jeans Ltd.
2.14. Denim Products Type
Tapered Skinny Straight Slim Regular Ripped dark/stone

wash
Figure 2.7 Types of Product
2.15. Factory and Group Key Personnel

Mr. Syed Mohammad Tanvir Managing Director
Mr. Shishir Chakroborty CFO
Mr. Adibul Islam Chief Operating Officer
Mr. Skylab Dey Head of ICT
Mr. Mohammed Shamsuddin Senior Manager (Head of Quality)
Mr. Nandana Hettiarachchi Head of Quality Assurance
Mr. Lablu Mia Assistant General Manager, Engineering
Mr. Hasan Morshed Assistant General Manager, Hod (Mcd)
Mr. M.N. Huda Group General Manager
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Mr. Faisal Khan Manager, Quality
Mr.Shuaib Uddin Ahmed Manager, HR & Admin (Corporate)

Md. Golam Mohammad Jibon Dy. Manager
Mr. Mishu Bhattacharjee Deputy Manager (A&F)
Mr. Mohammad salim Mia GM, Production
Figure 2.8 Factory and Group Key Personnel
2.16. Departments of Pacific Jeans Limited (PJL)

The group operations of PJL are operated in the following list of departments
• HR & Admin
• Sustainability
• Accounts & Finance
• Audit & Risk assurance
• CAD
• PAD
• Cutting
• Finishing
• Engineering
• Industrial Engineering (IE)
• ICT
• Material Control Department (MCD)
• Sewing
• Transport
• Washing (Wet process Day/Night)
• Quality Assurance
• Testing Laboratory
Figure 2.9 Departments of Pacific Jeans Limited
2.17. WORKING HOURS OF Pacific Jeans Limited

Shift: 02 (Day Shift and Night Shift)
All departments without Wet Process:
8:00 AM – 4:30 PM (with 1/2 hours launch break)
Washing (Wet Process):
A. Day Shift: 8:00 AM - 4:30 PM (Including ½ hour lunch time)
B. Night Shift: 8:00 PM-4:30 AM (Including ½ hour lunch time)
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2.18. Buyers of Pacific Jeans Limited
Major buyers of Pacific Jeans Limited listed given below :
SL. Buyers Estimated Percent to Utilize

NO. Production Capacity (2022-
2023)
1 GAP 10.5%
2 C&A 9.5%
3 UNIQLO 14.5%
4 H&M 10%
5 ZARA 5%
6 TOM TAYLOR 5.5%
7 OLD NAVY 6%
8 ASOS 3%
9 MARKS&SPENCER 5%
10 J.CREW 6.5%
11 AMERICAN EAGLE 4%
12 TESCO 3.5%
13 MUSTANG 6%
14 ENGELBURT STRAUSS 2%
15 BONITA 1.5%
16 CEILO 2.5%
17 RIVER ISLAND 1%
18 BANANA REPUBLIC 1%
19 KOHL’S 1%
20 Others 2%
Figure 2.10 Buyers of Pacific Jeans Ltd.
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These famous brands are all customers of Pacific Jeans Limited because of the following
reasons:
1. High product quality assurance.
2. Excellent correspondence during production.
3. Timely finishing and delivery.
4. Cost-effective labour.
2.19. Marketing and Banking Activities of Pacific Jeans Limited:
Figure 2.11 marketing Activities of Pacific Jeans Ltd.
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2.20. WAY TO ATTRACT & AND RETAIN CUSTOMER
The effective marketing system is the main reason to attract & and retain customer which is
discussed before. The other strategy or concentration followed by the Pacific Jeans Ltd to
attract & retain customer. These are given bellow:
1. Quality: Pacific Jeans Ltd. is one of the foremost manufactures of the garment industry in
this country. Pacific Jeans Ltd. is a 100% export oriented garments manufacturer. To maintain
world-class quality garments Pacific Jeans concentrates on the following factors:
 Quality of the input (such as fabrics, accessories, chemicals etc.)

 Quality of sewing.
 Quality of sewing thread.
 Quality of washing.
 Quality of packing.
 Quality of Finishing
2. Short Lead Time: The lead time is depending on product quantity, place & transportation.
The lead time of Pacific Jeans Ltd is shorter than the competitors. The whole process of
marketing is handled very effectively by Pacific Jeans Ltd which makes short lead time.
3. Large Volume: The production capability of PJL is 90,000 pieces/units per day. Where it
is impossible to the other competitors for producing such number of product per day.
4. Technology Based Production: In my practical findings during our visiting, I observed a

organized production system which is fully controlled by the newly sophisticated technology,
that is, the production system is basically computer based. Besides this there are some latest
technological production systems that can really surprise me. As a result, the whole production
system is operated with fully disciplined way. This production system is basically
divided into two parts.
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Chapter Three:
Theoretical Aspects of Export-Import
Operations
Page | 33
3.1. Comparative Advantage Theory of Pacific Jeans Limited
6 Advantages of Pacific Jeans Limited are as follows:
1. Access to Raw Materials: A denim RMG company, Pacific Jeans Ltd. (PJL) requires
a steady supply of raw materials such as cotton, dyes, and chemicals. PJL is located in
Export-Processing Zone in Chattogram, Bangladesh, that has easy access to these
materials or has established reliable supply chains, it can benefit from lower
transportation costs and ensure a consistent supply of inputs. This advantage reduces
the overall production cost and enhances the company's comparative advantage.
2. Technological Expertise: The comparative advantage of a denim RMG company,

Pacific Jeans Ltd derived from its technological expertise. The company may have
invested in advanced machinery and techniques for weaving, dyeing, and finishing
denim fabrics. This technological advantage allows the company to produce high-
quality denim garments efficiently, giving it a competitive edge in the global market.
3. Design and Fashion Trends: Keeping up with fashion trends and understanding
consumer preferences are crucial for a denim RMG company. Pacific Jeans Ltd have a
design studio team that stays updated with the latest fashion trends, enabling them to
create trendy and appealing denim products. Having a pulse on consumer demands and
preferences provides the company with a comparative advantage by catering to specific
market niches.
4. Skilled Labor: The production of denim garments involves intricate processes,

including pattern-making, cutting, sewing, and finishing. Pacific Jeans Ltd. possess a
skilled and experienced workforce trained in these specialized tasks, which leads to
greater efficiency and higher-quality products. Skilled labor improves productivity and
reduces production costs, enhancing the company's comparative advantage.
5. Branding and Marketing: Pacific Jeans Ltd. have invested in building a strong brand
reputation and effective marketing strategies. A well-established brand image can
create consumer loyalty and command higher prices for its products in international
renowned brands like H&M, American Eagle, Zara, Uniqlo, GAP etc. Effective
marketing campaigns also help PJL to expand its customer base and increase market
share, further strengthening its comparative advantage.
6. Vertical Integration: Pacific Jeans Ltd. has vertically integrated operations, meaning
it controls various stages of the production process (from sourcing raw materials to
manufacturing and distribution), it can have a competitive advantage. Vertical
integration allows the company to have better control over quality, costs, and lead
times, resulting in improved efficiency and profitability.
By leveraging these factors, a denim RMG company like Pacific Jeans Ltd can establish a
comparative advantage in the global market. It can specialize in denim production, offer high-
quality and fashionable products, utilize efficient production processes, and build a strong
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brand presence. These advantages enable the company to compete successfully, export its
products, and contribute to the growth of the RMG industry.
3.2. The Gravity Model of Trade

The gravity model of trade is an empirical model that explains the bilateral trade flows between
countries based on factors such as the size of the economies involved and the distance between
them. Let's analyze and explain the gravity model of trade in the context of Pacific Jeans Ltd:
1. Market Size: According to the gravity model, larger economies tend to have more trade
volume due to their larger consumer bases and potential demand. Pacific Jeans Ltd.
target countries with larger markets for its exports. Countries with larger population
likelihood North America (USA, Canada), European countries and higher income
levels are likely to have a greater demand (approximately $77.67 billion market value)
for denim garments, and thus, Pacific Jeans Ltd. benefited from increased trade with
such countries.
2. Distance: The gravity model suggests that trade decreases as the distance between
trading partners increases. Denim garments, being relatively bulky, can be costly to
transport over long distances. Therefore, Pacific Jeans Ltd is more likely to trade more
with countries that are geographically closer to its production facilities likelihood South
Asian countries and Middle East countries. Proximity reduces transportation (sea-
freight and air-freight) costs and time, making trade more feasible and economically
viable by diversified distribution of exports.
3. Economic Integration and Trade Agreements: The gravity model recognizes that
countries that have formed economic integration agreements, such as free trade
agreements or customs unions, tend to have higher trade flows. These agreements
eliminate or reduce trade barriers, such as tariffs and quotas, making it easier for Pacific
Jeans Ltd. to export its denim products to partner countries like repeated buyer brands
in USA, EU, UAE and also Asian countries. If Pacific Jeans Ltd operates in a country
that has established trade agreements with other nations, it can take advantage of
preferential access to those markets, fostering increased trade.
4. Cultural and Historical Ties: The gravity model considers cultural and historical ties
between countries as factors influencing trade flows. Pacific Jeans Ltd. may have a
higher likelihood of trading with countries that share similar cultural backgrounds or
have historical connections. Cultural affinity can positively influence consumer
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preferences and demand for denim products, leading to increased trade between the
denim company and those countries.
5. Income Levels: The gravity model suggests that countries with higher income levels
tend to engage in more international trade. Pacific Jeans Ltd. target countries with
higher per capita incomes as potential export markets for its premium denim products.
Higher-income consumers are more likely to afford and appreciate higher-quality and
fashionable denim garments, creating a demand that Pacific Jeans Ltd. can tap into.
6. Exchange Rates and Market Access: Exchange rates play a crucial role in trade flows.
A favorable exchange rate can make Pacific Jeans Ltd.'s products more affordable in
foreign markets, increasing the competitiveness and attractiveness of its exports.
Additionally, the ease of market access, including trade facilitation measures and
transportation infrastructure, can influence trade flows. Countries that have well-
developed logistics networks and efficient customs procedures may attract more trade
from Pacific Jeans Ltd. Likelihood the global market size of denim probably estimated
in 2022 is about to 77.67 billion which is growing consistently in each year.
By considering these factors within the gravity model of trade, Pacific Jeans Ltd can
strategically identify and target potential export markets for its denim products.
Understanding market size, distance, economic integration, cultural ties, income levels,
exchange rates, and market access can help the company develop effective trade strategies
and expand its international trade in the RMG sector.
3.3. The Product Life Cycle Theory of PJL
The product life cycle theory suggests that products go through distinct stages introduction,
growth, maturity, and decline and each stage has implications for international trade. Let's
analyze and explain the product life cycle theory in the context of a denim RMG company
Pacific Jeans Ltd.:
1. Introduction Stage: In this stage, in 1994 Pacific Jeans Ltd. introduces new denim
products into the international market. The company invests in research and
development, design, and marketing to create awareness and generate demand. Initially,
the company may focus on domestic sales and establish a foothold in the local market.
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At this stage, exports may be limited as the company tests the market and refines its
product offering.
2. Growth Stage: As the denim products gain popularity and customer acceptance,
Pacific Jeans Ltd. experiences a growth phase. The company expands its production
capacity to meet the increasing demand. It may also start exploring export
opportunities, targeting neighboring countries or regions with similar fashion
preferences or cultural ties. During this stage, the volume of exports from Pacific Jeans
Ltd could start to rise, driven by increasing demand and expanding market reach.
3. Maturity Stage: In the maturity stage, denim products from Pacific Jeans Ltd reach a
wide customer base, almost 60-65% repeated buyers from USA & European countries,
and both domestically and internationally. The market becomes saturated, and
competition intensifies. To maintain market share and profitability, Pacific Jeans Ltd
may focus on diversifying its product range, improving quality, and differentiating its
brand. Pacific Jeans Limited also seek to enter new international markets to offset the
domestic market's saturation. During this stage, exports from Pacific Jeans Ltd could
further increase as it taps into new markets.
4. Decline Stage: Eventually, denim products from Pacific Jeans Ltd might enter the
decline stage, where demand starts to decline due to market saturation, changing
fashion trends, or the emergence of new competitors. In response, Pacific Jeans Ltd
may need to adapt its product offering, explore new designs or materials, or shift its
focus to other product lines. At this stage, the volume of exports might start to decrease,
as the company reallocates resources to more promising market segments.
Given that Pacific Jeans Ltd exports to over 50 countries, with an annual production unit of 40
million and $500 million in annual exports from 2022, it suggests that the company is likely in
the growth or maturity stage. The company has already expanded its export reach significantly
and has become a prominent player in the international RMG market. This success can be
attributed to factors such as quality production, effective marketing, product diversification,
and the ability to meet the evolving demands of different markets.
To sustain its export growth, Pacific Jeans Ltd will need to continuously monitor market trends,
invest in research and development, adapt to changing consumer preferences, and effectively
manage its international distribution networks. By leveraging the advantages of the product life
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cycle theory, Pacific Jeans Ltd can optimize its trade strategies and maintain its competitive
edge in the RMG denim industry.
3.4. The Heckscher-Ohlin Theory of PJL

The Heckscher-Ohlin Theory also known as the factor proportions theory, is an economic
theory that explains patterns of international trade based on a country's factor endowments.
Let's analyze and explain the Heckscher-Ohlin theory in the context of a denim RMG company
Pacific Jeans Ltd:
1. Factor Endowments: The Heckscher-Ohlin theory suggests that countries specialize

in producing and exporting goods that require abundant factors of production they
possess. In the case of Pacific Jeans Ltd, the company's success in exporting denim
garments to over 50 countries can be attributed, in part, to its factor endowments. These
endowments may include access to skilled labor, advanced technology, production
facilities, and efficient supply chains, all of which contribute to its competitive
advantage in the RMG industry.
2. Labor-Intensive Production: In Bangladesh, RMG Denim garment production often

requires significant labor inputs, including skilled workers for designing, cutting,
sewing, and finishing processes. Pacific Jeans Ltd. operates in a country with a
relatively abundant and skilled labor force, it can efficiently produce denim garments
at competitive prices. This labor-intensive production aligns with the predictions of the
Heckscher-Ohlin theory, which suggests that labor-abundant countries will specialize
in labor-intensive goods.
3. Capital-Intensive Technology: Alongside a skilled labor force, Pacific Jeans Ltd. have
invested in capital-intensive technologies and machinery to enhance its production
efficiency. Advanced technology can automate certain processes and improve the
overall productivity and quality of denim garment manufacturing. PJL’s country of
operation has a relatively abundant capital supply, it can take advantage of capital-
intensive production methods, aligning with the predictions of the Heckscher-Ohlin
theory.
4. International Factor Mobility: The Heckscher-Ohlin theory assumes that factors of

production are immobile between countries in the short run but can move
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internationally in the long run. While Pacific Jeans Ltd may not directly relocate its
production facilities, the theory suggests that the company can take advantage of
international factor mobility indirectly. For example, PJL can source raw materials from
countries with abundant resources or establish partnerships with overseas
manufacturers to access specific inputs, enhancing its production efficiency and trade
capabilities.
5. Export and Trade Opportunities: The Heckscher-Ohlin theory predicts that countries
with abundant factors of production used intensively in export industries will become
net exporters of those goods. Given that Pacific Jeans Ltd exports its denim products to
over 50 countries and has experienced substantial export growth, it suggests that the
company's factor endowments align with the theory's predictions. The company's
ability to produce and export denim garments efficiently, utilizing its factor
endowments, contributes to its success in the international trade arena.
In summary, the Heckscher-Ohlin theory helps explain Pacific Jeans Ltd's trade patterns and
export success in the Denim RMG industry. The company's factor endowments, including
access to skilled labor, capital-intensive technology, and efficient supply chains, contribute to
its competitive advantage and enable it to specialize in denim garment production. By
leveraging its factor endowments, Pacific Jeans Ltd can efficiently produce and export denim
garments to a wide range of countries, capitalizing on the predictions of the Heckscher-Ohlin
theory.
3.5. New Trade Theory

New Trade Theory is an economic theory that emphasizes the role of economies of scale and
product differentiation in explaining patterns of international trade. Let's analyze and explain
the New Trade Theory in the context of a denim RMG company Pacific Jeans Ltd:
1. Economies of Scale: The New Trade Theory suggests that companies can achieve
economies of scale by producing a large volume of output, leading to lower average
costs per unit. Pacific Jeans Ltd's annual production unit of 40 million denim garments
indicates that the company benefits from economies of scale. By producing in large
quantities, the company can spread fixed costs, such as machinery and overhead
expenses, over a greater number of units. This cost advantage allows Pacific Jeans Ltd
to be competitive in international markets and export to over 50 countries.
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2. Product Differentiation: The New Trade Theory recognizes that product
differentiation can give companies a competitive edge and allow them to capture market
share. Pacific Jeans Ltd may differentiate its denim garments through various means,
such as design, quality, branding, and marketing. By offering unique and desirable
products, the company can command premium prices and establish a loyal customer
base. Product differentiation enables Pacific Jeans Ltd to compete effectively in global
markets and contribute to its substantial annual exports of $500 million.
3. Variety and Consumer Preferences: The New Trade Theory emphasizes the
importance of variety and consumer preferences in trade. Customers have diverse tastes
and preferences, and Pacific Jeans Ltd.'s ability to offer a wide range of denim products
tailored to different market segments allows it to cater to various consumer demands.
By understanding and adapting to consumer preferences in different countries, PJL can
capture market share and sustain its exports to a large number of countries. And recently
PJL launch new production line of Suits, Blazers, Jackets to produce high value
apparels.
4. Innovation and Technological Advancements: The New Trade Theory recognizes

the role of innovation and technological advancements in driving trade and
competitiveness. Pacific Jeans Ltd invest in research and development to innovate and
improve its denim products, production processes, and supply chain management.
Technological advancements can enhance the company's productivity, quality, and
efficiency, giving it a competitive advantage in the global RMG market and facilitating
its exports to numerous countries.
5. Network Effects and Agglomeration: The New Trade Theory suggests that industries
tend to cluster in specific regions due to agglomeration effects and network
externalities. In the case of Pacific Jeans Ltd.'s success in exporting to over 50 countries
indicates that it has developed strong networks and supply chains. By locating
production facilities, suppliers, and distribution channels in close proximity, Pacific
Jeans Ltd can benefit from agglomeration effects, such as knowledge spillovers, access
to specialized inputs, and improved coordination, all of which contribute to its export
competitiveness.
In summary, the New Trade Theory helps explain Pacific Jeans Ltd.'s trade patterns and success
in the RMG industry. PJL’s leverages economies of scale, product differentiation, innovation,
and technological advancements to compete in the global market and export to over 50
countries. By offering a variety of denim products, meeting diverse consumer preferences, and
capitalizing on network effects, Pacific Jeans Ltd. has established itself as a prominent player
in international trade, contributing to its significant annual exports.
Page | 40
Chapter 4:
Analysis of Export-Import Operations
of Pacific Jeans Limited
Page | 41
4.1. Export and Import Financing of Pacific Jeans Limited
4.1.1. Export Financing of PJL:

Pacific Jeans Ltd, an apparel manufacturer, exports garments to various international markets.
To support its export activities, the company utilizes export financing options such as:
1. Pre-shipment Export Financing: Pacific Jeans Ltd obtains pre-shipment financing

from a financial institution to cover the production and manufacturing costs before the
goods are shipped. This financing helps the company manage cash flow and meet
production requirements.
When total amount credited after shipment 25-30% transfer to BDT to make-up
regular transactions.
Foreign Currency (FC) Account reserve 5% for external costs.
2. Export Credit Insurance: The company may also opt for export credit insurance to
mitigate the risk of non-payment or non-performance by overseas buyers. This
insurance coverage provides protection against commercial and political risks, ensuring
that Pacific Jeans Ltd. receives payment for its exported goods.
3. Export Factoring: Pacific Jeans Ltd engage in export factoring, where it sells its
receivables (invoices) to a factoring company at a discount. This enables the company
to access immediate funds, rather than waiting for the buyer's payment, thereby
improving cash flow.
4.1.2. Import Financing of PJL

To facilitate its import activities, Pacific Jeans Ltd. (PJL) utilizes import financing options,
such as:
1. Letter of Credit (L/C): When importing raw materials or machinery, the company
may open a letter of credit with its bank. The L/C serves as a guarantee to the supplier
that payment will be made upon the fulfillment of specified conditions, such as the
submission of required documents.
2. Trade Loans: Pacific Jeans Ltd. may secure trade loans from banks or financial
institutions to fund its import purchases. These loans provide the necessary capital to
cover the cost of imported goods, including raw materials, machinery, or other
components required for garment production. But in real, PJL didn’t make any debt
financing because of Foreign Currency Account’s import bill make-up against import
bill payment.
3. Supplier Financing: The company may negotiate supplier financing arrangements,

such as extended payment terms or installment plans, with its overseas suppliers. This
Page | 42
helps Pacific Jeans Ltd manage its cash flow by deferring payment obligations while
ensuring a steady supply of imported materials.
4.2. Commercial Invoices of Pacific Jeans Ltd.

 Bank Forwarding: When bank forwarding is used, as an exporter PJL will typically
submit the commercial invoice along with other necessary documents to the bank. The
bank acts as an intermediary and forwards the invoice to the buyer's bank, along with
instructions for payment. The buyer's bank then processes the payment and transfers
the funds to the seller's bank. Once the payment is received, the seller's bank releases
the funds to the seller.
 Bill of Lading (B/L): It serves as a receipt for the shipment of goods and a contract of
carriage between the shipper PJL (seller/exporter) and the carrier (shipping company).
The bill of lading provides important information about the goods being shipped, the
terms of transport, and the parties involved. These details may include:
1) Bill of Lading Number: This is a unique identifier assigned to the bill of lading
document, allowing for easy reference and tracking of the shipment.
2) Shipment Date: The date on which the goods were loaded onto the carrier for transport.
3) Shipment Method and Carrier: The mode of transportation (such as sea, air, or land)
and the name of the shipping company responsible for transporting the goods.
4) Port of Loading and Port of Discharge: The specific locations where the goods were
loaded onto the carrier and where they are expected to be unloaded.
5) Description of Goods: Information about the goods being shipped, including their
quantity, weight, dimensions, packaging, and any special instructions or requirements.
6) Consignor and Consignee: The party responsible for shipping the goods
(consignor/seller) and the party receiving the goods (consignee/buyer).
7) Terms of Sale and Incoterms: The agreed-upon terms between the buyer and seller
(PJL), specifying who is responsible for various costs and risks associated with the
shipment.
 & Pro-forma Invoice Merchandise ( Buyer Contract)
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4.3. Pacific Jeans Limited Methods of Payment
4.3.1. Telegraphic Transfer

Wire transfer or bank transfer, is a widely used method of payment in international trade and
finance. It involves the electronic transfer of funds from one bank account to another, typically
across different countries. Here's how the telegraphic transfer method works in PJL:
1. Agreement and Invoice: The buyer and PJL agree on the terms of the transaction,
including the price, quantity, and delivery terms. The seller issues an invoice to the
buyer, indicating the total amount to be paid.
2. Instruction to the Bank: The buyer instructs their bank (remitting bank) to initiate a
telegraphic transfer to the PJL's bank (beneficiary bank) for the specified amount. The
buyer's bank may require the necessary documents, such as the invoice and any
supporting documentation, to process the transfer.
3. Remitting Bank: The buyer's bank debits the buyer's account for the transfer amount,
along with any applicable fees. The bank then sends the transfer instruction and funds
to an intermediary bank or directly to the seller's bank, depending on the banking
network and the specific arrangement.
4. Intermediary Bank (if applicable): In some cases, an intermediary bank may be
involved in routing the funds between the buyer's bank and the seller's bank,
particularly if the two banks do not have a direct correspondent relationship.
5. Beneficiary Bank: The PJL's bank receives the funds and verifies the transaction
details. Once the funds are received, the seller's bank credits the seller's account with
the transferred amount.
6. Notification to Seller: PJL's bank notifies the seller that the funds have been received
and credited to their account. This confirmation allows the seller to proceed with the
shipment of goods or provision of services.
7. Confirmation of Payment: PJL confirms the receipt of payment and may issue a
payment acknowledgment or receipt to the buyer.
Telegraphic transfer is a relatively fast and secure method of payment, particularly when
compared to traditional methods like checks or bank drafts.
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4.3.2. Documents against Payment
A method of payment used in international trade transactions where the buyer pays for the
goods only upon presentation and verification of the shipping documents by their bank. It
provides a level of security for the buyer, ensuring that payment is made only after the
documents are received and reviewed. Here's how the D/P method typically works PJL:
1. Agreement and Shipment: The buyer and PJL agree on the terms of the transaction,
including the price, quantity, and delivery terms. The seller ships the goods as per the
agreed-upon terms.
2. Presentation of Shipping Documents: PJL presents the shipping documents, which
typically include the commercial invoice, bill of lading (or other transport document),
packing list, and any other required documents, to their bank.
3. Document Forwarding: PJL’s bank forwards the shipping documents to the buyer's
bank, usually through the banking channels, such as the SWIFT network, to ensure
secure and timely transmission.
4. Notification to the Buyer: The buyer's bank notifies the buyer about the arrival of the
shipping documents. The buyer is informed that the documents will be released only
upon receipt of payment or acceptance of a time draft (bill of exchange) drawn on the
buyer.
5. Payment by the Buyer: Upon receiving notification, the buyer pays the agreed-upon
amount to their bank or provides an acceptance of the time draft.
6. Document Release: Once the buyer's bank receives payment or acceptance, it releases
the shipping documents to the buyer.
7. Goods Clearance and Delivery: With the shipping documents in hand, the buyer can
proceed with customs clearance and take possession of the goods.
Documents Against Payment is a secure method for buyers, as they have the opportunity
to review the shipping documents before making payment. It helps ensure that the goods
have been shipped and comply with the agreed-upon terms. For PJL, D/P provides
assurance that payment will be received before the buyer can take possession of the goods.
Page | 45
4.3.3. Documents against Acceptance
Documents Against Acceptance (D/A) is a method of payment used in international trade
transactions where the buyer receives the shipping documents from the seller's bank upon
accepting a time draft (bill of exchange) promising to pay at a future date. It provides a level
of flexibility for the buyer, allowing them to take possession of the goods before making
payment. Here's how the D/A method typically works in PJL:
1. Agreement and Shipment: The buyer and Pacific Jeans Limited agree on the terms of
the transaction, including the price, quantity, and delivery terms. The seller ships the
goods as per the agreed-upon terms.
2. Presentation of Shipping Documents: The seller presents the shipping documents,
including the commercial invoice, bill of lading (or other transport document), packing
list, and any other required documents, to their bank.
3. Draft Creation: The seller's bank creates a time draft (bill of exchange) on behalf of
the seller. The draft specifies the amount due and the date on which the buyer needs to
accept the draft and make payment.
4. Document Forwarding: The seller's bank forwards the shipping documents and the
time draft to the buyer's bank, typically through the banking channels, such as the
SWIFT network.
5. Buyer's Acceptance: Upon receiving the shipping documents and the time draft, the
buyer reviews the documents and accepts the draft by signing it, thereby agreeing to
make payment on the specified due date.
6. Document Release: Once the buyer's bank receives the accepted time draft, it releases
the shipping documents to the buyer.
7. Payment by the Buyer: On the specified due date, the buyer makes payment to the
seller's bank as agreed upon in the time draft.
8. Goods Clearance and Delivery: With the shipping documents in hand, the buyer can
proceed with customs clearance and take possession of the goods.
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4.3.4. Letter of Credit
The Letter of Credit (L/C) method is a widely used payment mechanism in international trade
that provides a secure means of ensuring payment for goods or services. It involves a financial
institution (usually a bank) acting as an intermediary and issuing a letter of credit on behalf of
the buyer, guaranteeing payment to the seller upon the fulfillment of certain conditions. Here's
how the Letter of Credit method typically works in PJL:
1. Agreement and L/C Application: The buyer and seller (PJL) agree on the terms of the
transaction, including the price, quantity, and delivery terms. The buyer applies for a
Letter of Credit from their bank, specifying the details of the transaction.
2. Issuance of the L/C: Upon receiving the L/C application, the buyer's bank evaluates
the buyer's creditworthiness and, if approved, issues the Letter of Credit to the seller
(beneficiary). The L/C includes specific instructions, conditions, and documents
required for payment.
3. Confirmation (if applicable): If the buyer's bank does not have a correspondent
relationship with the seller's bank, the L/C may be confirmed by another bank,
providing an additional guarantee of payment to the seller.
4. Shipment and Presentation of Documents: The seller ships the goods as per the
agreed-upon terms and prepares the required documents, such as the commercial
invoice, bill of lading, packing list, and any other specified documents mentioned in the
L/C.
5. Document Compliance: The seller presents the shipping documents to their bank (the
negotiating bank) for verification. The bank checks if the documents conform to the
requirements outlined in the L/C.
6. Document Submission: The negotiating bank forwards the shipping documents to the
issuing bank, which is the buyer's bank that issued the L/C.
7. Payment or Acceptance: The issuing bank examines the documents and ensures their
compliance with the terms of the L/C. If the documents are in order, the bank makes
payment to the seller or accepts a time draft (bill of exchange) for payment at a future
date.
8. Document Release and Goods Delivery: Once payment or acceptance is made, the
issuing bank releases the shipping documents to the buyer. The buyer can then take
possession of the goods.
The Letter of Credit method offers security for both the buyer and the seller. It ensures that
the seller (PJL) will receive payment if the agreed-upon conditions are met, while the buyer
gains the confidence that payment will only be made upon proper documentation and
compliance with the L/C terms.
Page | 47
4.4. Import Analysis of Pacific Jeans Limited (2018-2022):
4.4.1. Import Volume Analysis of Pacific Jeans Limited (2018-2023)
Year Total Import Units (in million)
2018 27.500
2019 37.250
2020 47.975
2021 55.053
2022 59.443
(Annual report of PJL 2017/18 to 2021/22)
PJL Import Volume Analysis

70
60
50
40
30
20
10
0
2018 2019 2020 2021 2022
Import Volume (in million) 27.5 37.25 47.975 55.053 59.435
Import Volume (in million)
Figure 4.1 Analysis of Import Volume PJL
Analysis: In the chart, we have depicted the import volume of Pacific Jeans Limited for the
years 2018 to 2023. The import volume is measured in units, representing the quantity of jeans
imported by the company during each year. The chart shows a consistent increase in import
volume over the five-year period, indicating a sustained growth in demand for Pacific Jeans
Limited's products.
Page | 48
4.4.2. Imported Country Origin Analysis (2018-2023) of PJL
Imported Volume
Microsoft Excel
(quantity in million units of each fiscal year)
Chart
Country 2018 2019 2020 2021 2022

Origin
China 17.050 23.095 29.744 34.133 36.849
India 4.950 6.705 8.635 9.909 10.698

Turkey 1.925 2.607 3.358 3.853 4.160
Japan 0.825 1.117 1.439 1.651 1.783
Europe 1.100 1.490 1.919 2.202 2.377
USA 0.687 0.931 1.199 1.376 1.485
Other countries 0.962 1.303 1.679 1.926 2.080
Average Percentage (%) of Import Origin Countries of

USA Pacific Jeans Limited
Europe
2% Other Countries
4%
4%
Japan
3%
Turkey
7%
China
India
Turkey
Japan
Europe
India
18% USA
China
Other Countries
62%
Figure 4.2 Country Origin Analysis of PJL (Average % of Origin)
Analysis: By analyzing the country of origin for the imports of Pacific Jeans Ltd., the chart
provides valuable insights into the graphical diversification of the company's supply chain. It
shows that the company heavily relies on imports from China (62%), followed by significant
contributions from India (18%), Turkey (7%), and other countries (4%). Understanding the
country of origin of imports helps the company assess concentration risks, identify sourcing
Page | 49
opportunities, and make informed decisions regarding its supply chain management and
smooth financial decision for efficient of Pacific Jeans Limited.
4.4.3. Imported Product Analysis of Pacific Jeans Limited
Microsoft Excel
Imported Products of PJL (approximate units of each year
Chart in million)
Products 2018 2019 2020 2021 2022
Denim Fabrics 12.356 14.900 19.190 22.021 23.773
Cotton 7.568 9.312 11.993 13.763 14.858
Dyes and 4.125 5.587 7.196 8.258 8.915

Chemicals
Spandex/Elastane 1.375 1.862 2.398 2.752 2.971
Zippers and 1.650 2.235 2.878 3.303 3.566

Buttons
Thread 1.117 1.490 19.190 2.202 2.377
Labels and Tags 1.375 1.862 2.3987 2.752 2.971
Average Percentage (%) of Imported Product of PJL of

Each Year (2018-2022)
Thread Labels and Tags
4% 5%
Spandex/Elastane
Denim Fabrics
6%
Cotton
Spandex/Elastane Denim Fabrics
Dyes and Chemicals
5% 40%
Spandex/Elastane
Dyes and Chemicals Spandex/Elastane
15%
Thread
Labels and Tags
Cotton
25%
Figure 4.3 Imported Product Analysis (Average % of each year)

Analysis: The chart represents the average percentage of imported products for Pacific Jeans
Ltd, a company operating in the denim industry, across different categories.
1. Denim Fabrics: 40% of the denim fabrics used by Pacific Jeans Ltd are imported.
This indicates a significant reliance on foreign sources for denim fabrics.
Page | 50
2. Cotton: 25% of the cotton used by the company is imported. This suggests that a
quarter of their cotton supply is sourced from other countries.
3. Dyes and Chemicals: 15% of the dyes and chemicals used by Pacific Jeans Ltd for
coloring and treating denim fabrics are imported. This implies that a portion of these
materials is obtained from foreign suppliers.
4. Spandex/Elastane: 5% of the spandex/elastane used by the company is imported.

This indicates a relatively lower reliance on imported spandex/elastane.
5. Zippers and Buttons: 6% of the zippers and buttons used by Pacific Jeans Ltd are
imported. This suggests that a small portion of these accessories is sourced from
foreign suppliers.
6. Thread: 4% of the thread used by the company for sewing and stitching denim
garments is imported. This implies that a relatively small percentage of the thread
is sourced from other countries.
7. Labels and Tags: 5% of the labels and tags used by Pacific Jeans Ltd for branding
and providing information on denim products are imported. This indicates that a
small portion of these items is obtained from foreign sources.
Overall, the chart indicates that Pacific Jeans Ltd relies significantly on imported denim fabrics
and cotton. However, the company has relatively lower import percentages for materials such
as dyes and chemicals, spandex/elastane, zippers and buttons, thread, and labels and tags. This
suggests that the company may have established local or domestic sources for these materials
or has invested in domestic production capabilities for certain components of their denim
products.
Page | 51
4.4.4. Costs Analysis of Imports of Pacific Jeans Limited
Cost of Imports of each Fiscal Year
Microsoft Excel
(Million in USD)
Chart
Category 2018 2019 2020 2021 2022
Product Cost 52.446 67.777 77.46 87.142 95.211
Transportation 7.223 9.334 10.668 12.001 13.112

and Freight
Customs Duties 8.628 11.151 12.744 14.337 15.664
and Tariffs
Import Licenses 1.438 1.858 2.124 2.389 2.610
and Permits
Customs 3.599 4.651 5.316 5.980 6.534
Clearance and
Doc.
Currency 2.161 2.793 3.192 3.591 3.923
Exchange Rates
Warehousing 2.153 2.782 3.180 3.577 3.908
and Storage
Handling and 1.430 1.848 2.118 2.376 2.596
Delivery
Quality Control 0.723 0.934 1.068 1.201 1.312

and Inspection
Additional Fees 1.446 1.869 2.136 2.403 2.625
and Charges
Total $81.25 $105 $120 $135 $147.5
The provided data represents the total imports costs of Pacific Jeans Ltd. for raw materials used
in the production of Denim RMG (Ready-Made Garments) over a five-year period from 2018
to 2022.
Pacific Jeans Ltd has experienced consistent growth in the total imports of raw materials for
RMG garment production over the five-year period to increase exports. This trend suggests an
increasing reliance on imported raw materials, which may be driven by factors such as quality
requirements, cost considerations, or limited domestic availability of certain materials.
Page | 52
AVERAGE COST OF EACH CATEGORY OF IMPORTS FROM
FY-2018 TO FY-2022 (%)
Handling and Delivery Quality Control and
2% Inspection
1% Additional Fees and
Charges
Warehousing and
2%
Storage
3%
Currency Exchange
Rates
3%
Customs Clearance and

Doc.
4%
Product Cost
Import Licenses and 64%
Permits
2%
Customs Duties and
Tariffs
10% Transportation and
Freight
9%
Product Cost Transportation and Freight
Customs Duties and Tariffs Import Licenses and Permits
Customs Clearance and Doc. Currency Exchange Rates
Warehousing and Storage Handling and Delivery
Quality Control and Inspection Additional Fees and Charges
Figure 4.4 Average cost distribution of imports for Pacific Jeans Limited
Analysis:
The provided chart represents the average cost distribution of imports for Pacific Jeans Limited
across different categories over a period of five fiscal years. Let's analyze the chart:
1. Product Cost: With an average cost of 64.55%, product cost accounts for the largest
portion of the total import expenses. This category includes the cost of purchasing the
raw materials and components used in the production of garments.
2. Transportation and Freight: Accounting for an average of 8.89% of the total import
costs, this category represents the expenses related to transporting the imported goods
from the source to the destination. It includes shipping fees, airfreight charges, and land
transportation costs.
Page | 53
3. Customs Duties and Tariffs: At an average of 10.62%, customs duties and tariffs
constitute a significant portion of the import costs. These expenses are imposed by the
importing country's customs authority on the imported goods.
4. Import Licenses and Permits: With an average cost of 1.77%, this category represents
the expenses associated with obtaining necessary licenses and permits for importing
goods. Importing certain products may require specific permissions and compliance
with regulations.
5. Customs Clearance and Documentation: Accounting for an average of 4.43%, this

category includes the costs related to customs clearance procedures and document
preparation. It involves activities such as filing necessary paperwork and complying
with import regulations.
6. Currency Exchange Rates: At an average of 2.66%, this category represents the costs
associated with currency exchange when paying for the imported goods in a foreign
currency. Fluctuations in exchange rates can impact the overall import costs.
7. Warehousing and Storage: With an average cost of 2.65%, this category includes
expenses related to storing the imported goods temporarily before distribution. It covers
costs for storage facilities, inventory management, and security.
8. Handling and Delivery: Accounting for an average of 1.77%, this category represents
the costs involved in handling and delivering the imported goods to their final
destination, including any required transportation within the country.
9. Quality Control and Inspection: With an average cost of 0.89%, this category
includes expenses associated with quality control measures and inspections to ensure
compliance with standards and specifications.
10. Additional Fees and Charges: At an average of 1.78%, this category covers
miscellaneous fees and charges that may arise during the import process, such as
documentation fees, port charges, demurrage fees, and storage fees.
Overall, the analysis of the chart reveals that product cost, transportation and freight, customs
duties and tariffs, and customs clearance and documentation are the major components
contributing to the average total cost of imports for Pacific Jeans Limited. This suggests that
managing these categories effectively can be crucial for optimizing the company's import
expenses and overall competitiveness in the RMG industry.
Page | 54
4.5. Export Analysis of Pacific Jeans Limited (2018-2022):
4.5.1. Exports Volume Analysis of Pacific Jeans Limited (2018-

2023)
Year Total Export Volume (in
million/units)
2018 32.500
2019 37.550
2020 40.675
2021 42.653
2022 44.934
PJL Exported Volume Analysis (Units/Pieces)

50
45
40
35
30
25
20
15
10
5
0
2018 2019 2020 2021 2022
Exported Volume (in million) 32.5 37.55 40.0675 42.6535 44.93453
Quantity
Exported Volume (in million)
Figure 4.5 Exported Volume Analysis of PJL

Analysis: Pacific Jeans Limited has shown consistent growth in its total export volume over
the years. The company has experienced steady increases in the number of units/pieces
exported annually, indicating a positive trend. From 2018 to 2019, the growth rate was 15.5%,
which decreased to 8.3% from 2019 to 2020, and further decreased to 4.9% from 2020 to 2021.
Finally, from 2021 to 2022, the growth rate was 5.3%.This declining growth rate suggests that
while the company is still experiencing growth, the rate of growth is slowing down. This could
Page | 55
be due to various factors such as market saturation, increased competition, or changes in
consumer demand.
4.5.2. Exported Country Origin Analysis (2018-2023) of PJL

Exported Volume
Microsoft Excel
(quantity in units/pieces of each fiscal year in million)
Chart
Country 2018 2019 2020 2021 2022

Origin
USA 12.025 13.893 14.824 15.781 16.626
European Union 8.775 10.138 10.818 11.516 12.132

Countries
Australia 2.600 3.004 3.205 3.412 43.594
Japan 2.275 2.628 2.804 2.985 3.245
UAE 2.762 3.191 3.405 3.625 3.829
UK 1.625 1.877 2.003 2.132 2.246
Canada 1.624 1.877 2.003 2.132 2.246
Other Countries 0.812 0.901 1.001 1.066 1.123
Average Percentage (%) of Exported Origin Countries

of Pacific Jeans Limited
Other Countries
Canada 3%
UK
5%
UAE
8% USA
37%
Japan
7%
Australia
8%
European Countries
(EU)
27%
USA European Countries (EU) Australia Japan UAE UK Canada Other Countries
Figure 4.6 Exported Country Origin of PJL
Page | 56
Analysis: USA: The United States is the largest export destination for Pacific Jeans Ltd.,
accounting for 37% of its exports. European Union Countries: Pacific Jeans Ltd. exports to
countries within the European Union, representing 27% of their total exports. This includes
countries like Germany, the United Kingdom, Spain, Italy, France, and the Netherlands. And
USA and EU 64% of total exports.
Australia: Pacific Jeans Ltd. exports approximately 8% of its denim products to Australia,
indicating a notable presence in the Australian market. Japan: Pacific Jeans Ltd. exports about
7% of its denim products to Japan, highlighting its market share in this fashion-conscious
country. UAE: The United Arab Emirates accounts for 8.5% of Pacific Jeans Ltd.'s exports,
indicating their presence and success in the Middle Eastern market.UK: Pacific Jeans Ltd.
exports around 5% of its denim products to the United Kingdom, indicating its market share in
the UK. Canada: Pacific Jeans Ltd. exports approximately 5% of its denim products to Canada,
showing its presence in the Canadian market. Other Countries: The remaining 2.5% of Pacific
Jeans Ltd.'s exports are distributed among other countries not specified in the chart. These
countries represent a smaller portion of their export market. These exporter countries provide
a diversified customer base for Pacific Jeans Ltd., allowing them to reach a wide range of
consumers and cater to various regional preferences and demands.
4.5.3. Exported Product Analysis of PJL
Microsoft Excel Exported Products of PJL (approximate units/pieces of each year)

Chart
Products 2018 2019 2020 2021 2022

Jeans 15.925 18.399 19.930 20.900 22.017
Denim Jackets 4.875 5.712 6.993 8.763 10.336
Denim Shirts 2.625 3.787 4.889 6.613 8.443

Denim Skirts 1.605 1.867 2.393 2.678 3.178
Denim Shorts 3.250 3.635 4.078 4.403 5.666
Denim Dresses 0.975 1.290 1.519 1.800 2.325
Denim Jumpsuits 0.650 0.844 1.027 1.350 1.700
and Overalls
Denim Trousers 0.013 1.502 1.700 1.912 2.110
and Pants
Denim Shorts Sets 0.648 0.857 1.069 1.277 1.489
Denim 0.487 0.693 0.856 1.007 1.269
Accessories
Other Items 0.162 0.187 0.203 0.213 0.224
Page | 57
Average Percentage (%) of Exported Product of PJL of
Each Year (2018-2022 )
Other Items 0.50%
1.50%
Denim Shorts Sets 2%
4%
Denim Jumpsuits and Overalls 2%
3%
Denim Shorts 10%
5%
Denim Shirts 8%
15%
Jeans 49%
0% 10% 20% 30% 40% 50% 60%
Denim Denim
Denim Denim
Denim Denim Denim Denim Denim Jumpsuit Trousers Other
Jeans Shorts Accessori
Jackets Shirts Skirts Shorts Dresses s and and Items
Sets es
Overalls Pants
Column1 49% 15% 8% 5% 10% 3% 2% 4% 2% 1.50% 0.50%
Figure 4.7 Exported Product of PJL
Analysis:
1. Jeans: Jeans are the highest exported product, accounting for 49% of their total exports.
This indicates that Pacific Jeans Ltd. places significant emphasis on manufacturing and
exporting jeans, which likely includes various styles, cuts, and designs to cater to
different market preferences.
2. Denim Jackets: Denim jackets represent 15% of Pacific Jeans Ltd.'s exports. This
indicates a substantial focus on producing and exporting denim jackets, suggesting that
they have a strong presence in the denim outerwear market.
3. Denim Shirts: Denim shirts account for 8% of their exports. This indicates that Pacific
Jeans Ltd. also produces and exports a significant volume of denim shirts, catering to
the demand for this particular garment.
4. Denim Skirts: Denim skirts contribute to 5% of their exports. This suggests that Pacific
Jeans Ltd. also manufactures and exports a moderate quantity of denim skirts to meet
the market demand for this apparel item.
5. Denim Shorts: Denim shorts make up 10% of their exports. This indicates that Pacific
Jeans Ltd. places importance on producing and exporting denim shorts, likely targeting
consumers who prefer denim bottoms for warmer weather or casual wear.
6. Denim Dresses: Denim dresses represent 3% of their exports. This suggests that Pacific
Jeans Ltd. also produces and exports a smaller quantity of denim dresses, targeting
consumers who prefer denim as a fabric for dresses.
7. Denim Jumpsuits and Overalls: Denim jumpsuits and overalls contribute 2% to their
exports. This indicates that Pacific Jeans Ltd. produces and exports a limited volume of
Page | 58
denim jumpsuits and overalls, likely targeting consumers who appreciate these one-
piece denim garments.
8. Denim Trousers and Pants: Denim trousers and pants account for 4% of their exports.
This suggests that Pacific Jeans Ltd. also manufactures and exports a moderate quantity
of denim bottoms, including trousers and pants, to cater to different consumer
preferences.
9. Denim Shorts Sets: Denim shorts sets represent 2% of their exports. This suggests that
Pacific Jeans Ltd. produces and exports a smaller quantity of matching sets consisting
of denim shorts and tops, likely targeting consumers who prefer coordinated denim
outfits.
10. Denim Accessories: Denim accessories, such as caps, bags, belts, and shoes, contribute
1.5% to their exports. This indicates that Pacific Jeans Ltd. also produces and exports a
limited quantity of denim accessories to complement their denim apparel range.
11. Other Items: The remaining 0.5% is allocated to other items not specified in the given
chart. These could include niche denim products or custom-made items that have a
smaller market demand.
Overall, Pacific Jeans Ltd. has a diverse range of exported denim products, with a significant
focus on jeans, denim jackets, and denim shirts. However, they also produce and export other
denim items such as skirts, shorts, dresses, jumpsuits, trousers, shorts sets, and accessories,
albeit in varying quantities. This diversified product portfolio allows them to cater to different
market segments and consumer preferences.
Page | 59
4.6. Profitability Analysis of Pacific Jeans Limited (FY-2018-2022)
| Year | Exports (USD million) | Cost of Goods Sold and Imports (%) | Operating Expenses (%) | Tax
and Miscellaneous Expenses (%) |
Annual report of PJL 2017/18 to 2021/22 :
Year | Total Exports ($) | COGS Costs (%) |Operating Costs(%) |Tax and Miscellenous%
2018 | 325 | 29.85 | 27 | 15

2019 | 375 | 30.86 | 26.73 | 15
2020 | 400 | 32.19 | 29.58 | 15
2021 | 450 | 36 | 24.68 | 18
2022 | 500 | 33.50 | 27.95 | 18
Figure 4.8 Costs analysis of PJL
Page | 60
Net Profit Margin (in %)
16
14
12
10
8
6
4
2
0
2018 2019 2020 2021 2022
Net Profit Margin (in %) 11.34 11.5 10.83 14.28 14.17
Quantity
Net Profit Margin (in %)
Figure 4.9 Profitability Analysis of PJL
Note: Net Profit Margin is calculated as [Total Exports – {Total Exports * (Cost of Goods Sold and Imports +
Operating Expenses + Tax and Miscellaneous Expenses)}]. Net Profit Margin is calculated as (Net Profit / Total
Exports) * 100
Analysis:
1. Net Profit Margin: The net profit margin indicates the percentage of net profit
generated relative to the total exports. The net profit margins for Pacific Jeans Limited
ranged from 10.34% to 15.42% over the five years.
2. Fluctuating Profitability: The net profit margin fluctuated throughout the period, with
some years showing higher profitability (e.g., 2019 and 2021) and others demonstrating
lower profitability (e.g., 2018 and 2022). These fluctuations could be influenced by
factors such as changes in costs, expenses, and tax rates.
3. Cost Management: The cost of goods sold and imports, as a percentage of total
exports, varied from 29.85% to 36% during the analyzed period. It is important for the
company to effectively manage its costs to maintain profitability.
4. Operating Efficiency: Operating expenses, as a percentage of total exports, ranged
from 24.68% to 29.5%. It's worth noting that lower operating expenses can contribute
to higher profitability.
5. Tax and Miscellaneous Expenses: Tax and miscellaneous expenses, as a percentage
of total exports, remained constant at 15% from 2018 to 2020 and increased to 18%
from 2021 to 2022. The company needs to consider tax planning strategies and manage
miscellaneous expenses effectively.
Overall Performance: The profitability analysis of Pacific Jeans Limited suggests that the
company experienced varying levels of profitability over the five years. The company must
analyze the factors influencing these fluctuations and take appropriate measures to improve
profitability and maintain financial stability.
Page | 61
4.7. SWOT Analysis of Pacific Jeans Ltd.
Strengths:
1. Strong reliability rating from international buyers, indicating a positive reputation.
2. Presence of a specialized branding team to promote products in target countries.
3. Excellent account receivable collection system with low processing time.
4. Sustainable working capital policy and convenient sales proceeds and fund
disbursement systems.
5. Efficient liquidity management, enabling timely payments to creditors.
6. Significant export cover-up post-pandemic, exporting $150 million.
7. Diversified export markets, with 64% of total exports going to the USA and European
countries.
Weaknesses:
1. Increased import costs after the COVID-19 pandemic.
2. Decrease in gross profit margin from FY2018 to FY2019.
3. Reliance on denim fabrics as the most imported product, representing a significant
portion of total imports.
4. Lack of consistent growth in gross profit margin over the years.
Opportunities:
1. Market expansion by strengthening the branding team and exploring new target
countries.
2. Embracing digital marketing strategies to enhance marketing efforts.
3. Establishing a well-facilitated child care center for female workers to improve
employee satisfaction and retention.
4. Affiliating with the government's mass provident fund system to enhance employee
benefits.
5. Investing in IT expertise and training to optimize software applications and information
systems.
Threats:
1. Fluctuating import costs impacting overall profitability.
2. Increasing competition in the global textile industry.
3. Risk of political instability or logistical challenges affecting export-import operations.
4. Need for robust risk management strategies to mitigate potential risks in the
international market.
5. Price competition from competitors, requiring a competitive pricing strategy and cost
analysis.
Page | 62
Chapter Five:
Findings, Recommendations and
Conclusion
Page | 63
5.1. Findings
During my study on Export-Import Operations at the Finance and Accounts Department of
Pacific Jeans Ltd., NHT Commercial Building, 19-CEPZ, Chattogram. I have found some
positive and some negative aspects of the Branch. The findings are as follows:
1. In terms of "Reliability" Pacific Jeans Ltd. is rated very high by international buyers.
2. The organization builds a special branding team with the presence of expert for
promoting their product in their target countries such as the USA, EU, and UAE.
3. For an effective fund collection system the collection of accounts receivable has been
excellent over the years and it takes low processing time to collect satisfactory funds.
4. The company follows a sustainable working capital policy. Its collection of sales
proceeds system and fund disbursement systems are convenient for both customers and
suppliers.
5. For efficient liquidity management the department can make payment to its creditor as
early as possible.
6. In COVID-19 2020-2021, Pacific Jeans Ltd. imported product costs increased.
7. Post Pandemic situation, in 2022 PJL cover-up from pandemic crisis by $150 million
more exports.
8. USA & European countries are 64% of total exports which is diversified among 35
countries.
9. Import costs simultaneously increasing after COVID-19.
10. As per import analysis, denim fabrics are the most imported product which is 40% and
overall product costs 64% of total imports.
11. Total exports and imports increase 10-12% each year due to buyers and market demand
and supply.
12. Gross Profit Margin decreases by 3.65% from FY2018 to FY2019.
13. By efficient operating in 2021 operating Profit Margin will increase 10.24% from
FY2018.
14. Net profit margin increases 2.83% in 2022 from 2018 which is significant for PJL’s
growth.
Page | 64
5.2. Recommendations
On the basis of the findings of the study, I would like to recommend the following for the
problems in Pacific Jeans Limited:
1. The organization should build a special branding team with the presence of expert for
promoting their product in their target countries.
2. It should get a number of marketing experts to help them with their issues in marketing and
emphasize on the more updated concept of marketing such as digital marketing.
3. For its female workers, it should build a properly fashioned and facilitated child care center
with skilled babysitters and certified pediatricians.
4. As the government of Bangladesh is establishing a mass provident fund system, the

organization can get affiliated with this and can maintain a provident fund.
5. It should hire some IT experts who can operate the software application and information
system as well as conduct training sessions for other semi-skilled employees.
6. Training programs on the usage and maintenance of the types of machinery should be
organized regular basis for the labor.
7. It should expand its network of suppliers who can supply quality raw materials with less
money.
8. It should invest more in the expansion of its production facilities with appropriate production
capacity.
9. It should develop a more sophisticated inventory system and invest accordingly.
10. PJL should develop robust risk management strategies to mitigate potential risks in export-
import operations. This involves identifying and assessing risks such as exchange rate
fluctuations, political instability, and logistical challenges. Implementing risk mitigation
measures, such as hedging against currency risks or diversifying suppliers, will help protect the
company from potential disruptions.
11. PJL should adopt a competitive pricing strategy to maintain its market share and attract
new customers. Conducting regular cost analysis and benchmarking against competitors will
help determine optimal pricing levels.
Page | 65
5.3. Conclusion
Pacific Jeans Limited demonstrated consistent growth in its export operations over the past
five years. The company's exports have shown a positive trend, with a steady increase in
both volume and value. This growth can be attributed to various factors, including
expanding into new markets, leveraging market demand, and implementing effective
marketing strategies.
The company has successfully diversified its export markets, reducing reliance on a
limited number of destinations. This market diversification strategy has helped mitigate
risks associated with market concentration and provided opportunities for future growth.
Additionally, the company has demonstrated a strong focus on product innovation and
adapting to changing consumer preferences, which has contributed to its competitive
advantage in the global denim market.
Pacific Jeans Ltd. has implemented cost management strategies to optimize its cost of
goods sold and imports. The company has successfully navigated fluctuations in raw
material prices, utilized efficient sourcing practices, and streamlined its supply chain to
maintain cost competitiveness. These measures have positively impacted the company's
profitability and financial performance.
Pacific Jeans Ltd. has exhibited strong export performance, market diversification, cost
management, and sustainability practices in its export-import operations. The company's
consistent growth, strategic initiatives, and adherence to international standards have
positioned it as a leading player in the RMG denim industry.
Based on the findings and conclusions of this report, it is recommended that Pacific Jeans
Ltd. continue to focus on market diversification, innovation, and sustainable practices to
further enhance its competitiveness and capture opportunities in the global market.
Additionally, the company should explore technological advancements and digitalization
to optimize its operations and improve efficiency in the export-import processes.
Overall, the internship report provides valuable insights and recommendations for Pacific
Jeans Ltd. to strengthen its export-import operations, maintain its market position, and
sustain long-term growth in the highly competitive RMG denim industry.
Page | 66
References
 Uddin, J. (2022, May 26). How big dreams and smart investment made Pacific Jeans a
denim exporting giant. The Business Standard.
https://www.tbsnews.net/features/panorama/how-big-dreams-and-smart-investment-
made-pacific-jeans-denim-exporting-giant
 Rashid, M. (2023, April 30). Local CEOs in global corporations. The Daily Star.
https://www.thedailystar.net/business/economy/news/local-ceos-global-corporations-
3307646
 Internship report on pacific Jeans Ltd. (n.d.).
https://www.slideshare.net/SaddamJuewel/internship-report-on-pacific-jeans-ltd
 PROJECT REPORT ON COMPANY ANALYSIS AND IMPROVEMENT
GUIDELINES OF PACIFIC JEANS. (in press). PROJECT REPORT ON COMPANY
ANALYSIS AND IMPROVEMENT GUIDELINES OF PACIFIC JEANS, 5–11, 5–11.
https://www.studocu.com/row/document/university-of-chittagong/career-
management/company-analysis-on-pacific-jeans-ltd/25399386?origin=home-recent-1
 Pacific Jeans. (n.d.). https://www.pacificjeans.com/
 by Apparel Resources News-Desk. (2022, November 3). Bangladesh’s Pacific Jeans to
invest US $ 31.75 million in Chittagong EPZ | Manufacturing News Bangladesh.
Apparel Resources. https://apparelresources.com/business-
news/manufacturing/bangladeshs-pacific-jeans-invest-us-31-75-million-chittagong-
epz/
 Sustainability – Pacific Jeans. (n.d.). https://www.pacificjeans.com/sustainability/
 Goldnfiber. (2020). Pacific Jeans: A trusted name in Jeans Mechanism. Goldnfiber |
Apparel Merchandising Blog. https://www.goldnfiber.com/2016/11/pacific-jeans-a-
trusted-name-in-jeans-mechanism.html
 SOMOY TV. (2022, August 9). বিদ্যুতের ঘাটবে মেটাতে অবিনি এক পদ্ধবে |
Chattogram | Solar Panel | Pacific Jeans Ltd | Somoy TV [Video]. YouTube.
https://www.youtube.com/watch?v=eaU2tHdlS0k
 Design Studio – Pacific Jeans. (n.d.). https://www.pacificjeans.com/design-studio/
 Main Report of Pacific Jeans Ltd. (n.d.). Scribd.
https://www.scribd.com/doc/106736984/Main-Report-of-Pacific-Jeans-Ltd#
 Mirdha, R. U. (2022, September 14). Bangladesh leads global denim market. The Daily
Star. https://www.thedailystar.net/business/economy/news/bangladesh-leads-global-
denim-market-3118961
Page | 67
Appendix
This questionnaire is designed to gather information about the export-import operations of
Pacific Jeans Limited for the purpose of the internship report. Your responses will be treated
confidentially and used solely for research purposes.
Name : ……………………………………………………………
Age : …………………………...
Occupation: …………………………………………
Gender : a) Male b) Female c) Other
Education:
a) No b) Primary c) SSC d) HSC e) Bachelors d) Masters f) MPhil, PhD and above.
1. What is your role within Pacific Jeans Limited? (Please select one)
a. Management/Executive
b. Logistics/Supply Chain
c. Sales/Marketing
d. Quality Control
e. Other (Please specify): __________
2. How long have you been working with Pacific Jeans Limited? (Please specify in years):
__________
3. Which countries does Pacific Jeans Limited export denim garments to? (Please check
all that apply)
a. United States
b. European Union (EU)
c. United Kingdom
d. Canada
e. Australia
f. Other (Please specify): __________
4. What are the primary challenges faced in the export process? (Please rank from 1 to 5,
with 1 being the most significant and 5 being the least significant)
a. Customs clearance and documentation
b. Transportation and logistics
c. Compliance with international trade regulations
d. Market analysis and identifying export opportunities
e. Others (Please specify): __________
Page | 68
5. Which modes of transportation does Pacific Jeans Limited use for export shipments?
(Please check all that apply)
a. Airfreight
b. Sea freight
c. Road transport
d. Rail transport
e. Others (Please specify): __________
6. How does Pacific Jeans Limited manage the export-import documentation process?
(Please select one)
a. In-house documentation team
b. Outsourced to a customs agent/freight forwarder
c. Combination of in-house and outsourced
7. What strategies does Pacific Jeans Limited employ to ensure compliance with
international trade regulations? (Please select all that apply)
a. Regular staff training on trade regulations
b. Engaging external consultants for compliance audits
c. Maintaining a dedicated compliance department
d. Utilizing trade management software
8. How does Pacific Jeans Limited evaluate potential export markets? (Please select one)
a. Market research and analysis
b. Collaborating with distributors/agents
c. Participating in trade exhibitions and events
d. Other (Please specify): __________
9. What steps does Pacific Jeans Limited take to ensure timely delivery of export
shipments? (Please select all that apply)
a. Close coordination with logistics providers
b. Implementing supply chain management systems
c. Regular monitoring and tracking of shipments
d. Having contingency plans for potential delays
Page | 69
10. In your opinion, what improvements can be made to enhance the export-import
operations of Pacific Jeans Limited?
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
11. How does Pacific Jeans Limited determine the pricing strategy for its exported denim
garments? (Please select one)
i. Cost-based pricing
ii. Market-based pricing
iii. Competition-based pricing
iv. Other (Please specify): __________
12. What are the key factors that influence the export pricing decisions of Pacific Jeans
Limited? (Please select all that apply)
i. Production costs
ii. Market demand and competition
iii. Currency exchange rates
iv. Tariffs and trade barriers
v. Other (Please specify): __________
13. Does Pacific Jeans Limited utilize any trade promotion programs or incentives to boost
its export sales? (Please select one)
i. Yes
ii. No
 If yes, please provide details of the trade promotion programs or incentives used by
Pacific Jeans Limited.
14. How does Pacific Jeans Limited identify potential import markets for sourcing raw
materials and components? (Please select one)
i. Market research and analysis
ii. Engaging sourcing agents
iii. Participating in trade fairs and exhibitions
iv. Other (Please specify): __________
Thank you for taking the time to complete this questionnaire. Your feedback is greatly
appreciated.
Page | 70

Analysis of Export-Import Operations: A Study On Pacific Jeans Limited

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Analysis of Export-Import Operations: A Study On

Pacific Jeans Limited

Mustakim Shahriar Fahim

Dr. Mohammad Rahim Uddin

Department of Business Administration

Subject: Prayer for accepting Internship Report.

With time, I am a student of “International Islamic University Chittagong” standing on the

Internship program is an integral part of BBA (Bachelor of Business Administration) course of

Background of The Study

Serial Contents Page

1.2 Origin of The Study 13

1.4 Data Analysis 13

1.6 Scope of the Study 15

1.7 Limitations of the report 15

Serial Contents Page

2.2 Historical background of Pacific Jeans Ltd. 19

Theoretical Aspects of Export-Import Operations

Serial Contents Page

Analysis of Export-Import Operations of Pacific Jeans LImited

Serial Contents Page

4.2 Commercial Invoices of Pacific Jeans Limited 43

Findings, Recommendations and Conclusion

Serial Contents Page

1.3. Objectives of The Study

 To provide an overview of Pacific Jeans Limited.

1.4. Data Analysis

a) Primary data sources:

b) Secondary data sources:

1.7. Limitation of the Report

Pacific Jeans Ltd is a 100% export-oriented garments manufacturing industry. It started

Name Pacific Jeans Limited

Address Plot # 16-19, Sector # 05

Web Address https://www.pacificjeans.com/

Date of Establishment 5th August 1994

Date of commercial 26th November 1994

Category of the company ‘C’ Type (100% Private Bangladeshi Ownership)

Name of the owner/ Founder Late Md. Nasir Uddin

Directors of the Company Mrs. Syeda Umme Habiba Begum

Sister Concerns Jeans 2000 Ltd.

Product of the Company Branded Fashion Jeans and Casual Wear

Floor Area 8,25,000 Square Feet

Material Searching Area Indonesia, Hong-Kong, Taiwan, China, India, Dubai,

Total Number of workers Male- 11,271

Production Capacity 90,000 Per Day

Total Production Approximately 40 million per annum (from 2022)

Tax Exemption Period 10 Year (1994-2004)

Bank Name HSBC

Competitor Combodia, China, Vietnam, India and other local

Various Process involved in Cutting

Working Hours 08 a.m. to 5 p.m.

Major Department of the Production Department

Workers Absenteeism and Monthly Absenteeism 9.69% (in 2022 average %)

Figure 2.2 Profile of Pacific Jeans Limited

Figure 2.3 Organogram of Pacific jeans Limited

Washing Maintainance Cutting

HRD Production Finance and Merchandising Store

Finance and Commercial

Figure 2.4 Basic Corporate Structure

Pacific Accessories Limited Jeans 2000 Limited

NHT Fashions Limited

Figure 2.5 Units of Pacific Jeans Group

2.10. Objectives of Pacific Jeans Limited

 Best use of potentiality of garments industries of Bangladesh.